Because significant investments are required to finance impactful solutions to reduce emissions.
Climate finance is the way to overcome barriers in the adoption of expensive technologies and/or in regions with limited resources.
Climate finance refers to public sources of funding, e.g. concessions, grants, capital, guarantees, risk coverage instruments or any other economic, financial or fiscal instrument that makes implementing projects aimed at reducing greenhouse gas emissions possible.
Financing clean energy projects in developing countries is often difficult due to perceptions of risk, both political and economic, that make it difficult to access financing under conditions that make it a viable investment.
Most common barriers to investment:
- Technical risks associated with the lack of proven technologies and/or developed sectors in the country to be deployed.
- Perception that the required investment is high.
- Capital Gap: Need for additional contributions to achieve capital investment.
- Lack of financing options.
- Guarantees are not considered sufficient or adequate.
- Currency risk.
- Regulatory risks
How to access?
Access to climate financing requires meeting a number of unique, and often complex, requirements. It is often costly, laborious, and most importantly, not a risk-free process
AdvanceBau offers a unique solution to access climate financing, at a shared risk based on results. This guarantees adequate management of the risks inherent in obtaining said financing, thus minimizing the client’s exposure to them.
Climate finance is a breakeven point tool that makes viable projects that otherwise could not be realized
Climate finance is an option to consider when there is a financial gap that cannot be closed or when undertaking the project involves too high a risk.
Our Director for Climate Finance:
Francisco García Koch
“Many developers of clean energy projects, capable of reducing greenhouse gas emissions, face barriers that often seem insurmountable. For a good part of them, developing these projects is more than a business. It is a mission, to be able to contribute to a collective effort that seeks to close the enormous gap that exists between what we have to do as a species and what we are managing to do to prevent future generations from suffering the impacts of climate change. Climate change finance is designed to help those who want to contribute to closing that gap but who, under current circumstances, are unable to do so “
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